Circulate Capital's 2030 Impact Projections
10 MILLION TONNES
of plastic pollution prevented
20 MILLION TONNES
of value-added plastics
15 MILLION TONNES
of CO2e reduced or avoided
new safe, stable
and dignified jobs
30 MILLION TONNES
of all waste managed
5 MILLION TONNES
of new capacity
created per year
AT LEAST 30%
of our portfolio meets
2x eligibility criteria
Vision for Returns on Investment and Impact at Scale
These ideals guide our investment decisions, providing the framework for financial results, positive impact, and managing the environmental, social and governance risks in our investments -- informing how we engage all of our stakeholders -- from portfolio companies recycling plastic across Asia, to the world’s largest consumer brands, alongside co-investors and other stakeholders.
Creating impact at scale requires a holistic strategy that addresses the value chain and broader ecosystem. By investing in solutions, we can set a course for a more inclusive, circular economy and stop the flow of plastic into the ocean.
Our ambition is to unlock one billion dollars to prevent 150 million tonnes of plastic pollution and advance the circular economy with the largest and most impactful portfolio globally. We aim to prove that investing in the sector can generate competitive returns while preventing plastic pollution, mitigating climate change, and improving livelihoods.
Defining Our Impact
We believe our approach to measuring impact is one of the leading practical applications of thinking in this space and we aim to share our approach as widely as possible so others can learn alongside us and help us improve. We welcome feedback to help us learn and evolve in our approach.
We are a signatory to the International Finance Corporation’s Operating Principles for Impact Management and United Nations Principles of Responsible Investing, which commit Circulate Capital to global standards for managing investments that demonstrate positive social and environmental impact.
In 2021, we engaged EY to provide an independent third-party assurance for our Impact Framework. A full statement outlining EY’s Independent Assurance Audit is available here.
OUR IMPACT IN 2021
In 2021, the Circulate Capital Team and Portfolio:
Invested more than
in six new portfolio companies
348,500 TOTAL TONNES
515 NEW JOBS
supported thousands of informal workers
Unlocked an additional
directly and indirectly into our strategies
of new infrastructure capacity
29% OF OUR PORTFOLIO
companies had at least
30% women in senior management roles
Prevented an additional
of plastic leakage
Created an additional
Reduced or avoided
59,300 ADDITIONAL TONNES
of CO2e emissions from
plastics recycling alone
8 NEW WASTESHEDS
bringing the total to 13
STORIES FROM THE PORTFOLIO
On the path to unlock $1B:
A Platform for Impact
Circulate Capital remains laser-focused on building scale and impact with our portfolio companies and partners.
Our ambition is to unlock one billion dollars to prevent 150 million tonnes of plastic pollution and advance the circular economy with the largest and most impactful portfolio globally. We aim to prove that investing in the sector can generate competitive returns, while preventing plastic pollution, mitigating climate change and improving livelihoods.
SCALE UP OUR PORTFOLIO
CATALYZE CAPITAL TO ACCELERATE THE CIRCULAR ECONOMY
FOCUS ATTENTION ON IMPROVING LIVELIHOODS
APPLY A GENDER SMART LENS TO INVESTMENTS
Our Impact Reports
All Impact Case Studies
Value Chain Partnerships
Our portfolio company Lucro Plastecycle and our investor Dow entered into a memorandum of understanding to co-develop a post-consumer recycled polyethylene film solution.
This partnership embodies Circulate Capital’s vision of being a value-added investor by bringing the power of our relationships to support product development and market access.
Preventing Plastic and Improving Livelihoods
The Circulate Capital Handbook, published in March 2019, highlighted the relationship between plastic leakage and livelihoods. In particular, it notes that informal collectors are the foundation of the collection and sorting segments of the plastic value chain in South and Southeast Asia and that the high rates of recycling of some types of plastics is due to the manual collection and sorting done by these workers.
Any plan to develop the circular plastics value chain needs to be equitable and inclusive, and create opportunities for meaningful social impact. This is particularly true for women, who represent the majority of workers in the informal waste sector and are among the most marginalized and vulnerable members of their communities.
Creating value-added end markets: Srichakra spearheads food contact-grade recycling in India
While significant effort is being made to tackle India’s plastic pollution issue, the country has faced barriers in accelerating the development of a circular economy. Almost 90% of the PET collected in India ends up being recycled, but the recycled material is generally downgraded, resulting in low levels of circularity. Food contact-grade recycled plastic is close to virgin plastic in quality, however, the use of recycled PET (rPET) in such packaging has been, until very recently, heavily restricted in India.
Insights in Indonesia
Indonesia has significant waste challenges, as the population increases alongside economic growth, seeing waste management infrastructure unable to keep pace with the level of waste generated. The operating conditions and the highly fragmented nature of the circular plastics value chain means that meeting the country’s plastic pollution reduction goals will be a challenge.
Tridi Oasis, a female-owned Indonesian start-up that manufactures recycled PET flakes for a variety of uses, was one of Circulate Capital’s first investments. The company’s experiences and our partnership exemplify some of the challenges and opportunities of investing in Indonesia.
Catalytic capital in action: Recykal raises $22 million from Morgan Stanley and existing investors
India’s first waste-commerce company, Recykal, is providing cutting-edge end-to-end digital solutions supporting a sustainable recycled plastic supply chain in India. Recykal facilitated the recycling of nearly 3,000 metric tons of plastic waste in 2021 alone. While currently focused on plastics and e-waste, Recykal's circular economy solutions have also facilitated the proper management of more than 130,000 tonnes of other recyclable materials, including paper and steel.
Hyderabad-based Srichakra Polyplast is pioneering plastic recycling in India by becoming one of the first to develop food-grade, bottle-to-bottle recycling capabilities. With CCOF capital and support, the company is expanding its capacity for manufacturing high-quality recycled PET flakes from post-consumer plastic waste, while optimizing its operations to ensure success in global markets for post-consumer packaging.
CCOF’s investment in Srichakra exemplifies ways that our capital supports portfolio companies in building world-class operations, one of our key areas of intended impact.
Climate tech innovations: potential for impact through disruption
We will only solve the ocean plastic problem by investing in both upstream and downstream solutions -- no single solution set will be sufficient. Every solution must support decarbonization in addition to addressing plastic waste. We anticipate the climate tech portfolio companies within our Circulate Capital Disrupt Innovation Strategy will deepen the impact we have on the environment, by reducing our reliance on virgin extracted resources.